Provisional calculations for agriculture in 2006 - A rise in prices and a revenue turnaround

Claire Lesdos-Cauhapé, Insee

The agricultural year for 2006 is marked by a reduction in crops due to drought and a sharp increase in prices (corn, oil protein crops). The value of agricultural production, excluding product subsidies, has increased by 3.4% compared with 2005. Since intermediate consumption and subsidies are almost stable, the increase in agricultural output is clear. By implementing the 2003 Common Agricultural Policy reform, the direct aid linked to area and livestock has been partially replaced by the introduction of a single farm payment. Agricultural employment continues to decrease. Therefore, according to the estimations of the provisional agriculture budget, agricultural income per worker seems set to increase by around 9% in real terms in 2006, after a fall of 6.5% in 2005. Net revenue for the agricultural industry, calculated in terms of non-salaried workers, is predicted to increase by 15% in 2006, after falling by 13% in 2005.

Insee Première
No 1113
Paru le : 01/12/2006